Monday, May 27, 2013

Hulu Has Many Buyers

There are at least 7 buyers interested in Hulu, the streaming video service.  Along with a few equity companies, bids came from DirecTv, Time Warner Cable, and most recently Yahoo.  No Apple, no Amazon, or any other cable or broadcast network or operator.  "The Los Angeles-based Hulu board began seeking the latest round of bidding in March. Now the question is whether Disney, News Corp, and Comcast will look for an exit and take their content with them, then license it back to Hulu for bigger fees but no exclusivity. If so, then what in the world are bidders actually buying?"  A good question and I also wonder why these current owners don't see the value their platform has built for them.  Perhaps they rather offer streaming content through their own sites without seeing the incremental value an aggregator like Hulu can offer. Perhaps they fear the disruptive nature of streaming to their current cable license fee model.  They may fear this change but they can't stop it.

Without ABC, NBC, and News Corp as owners, the financial model will indeed change.  Unless quite long term content deals can be locked up, Hulu may lose both the exclusivity and the breadth of content that enables them to compete effectively and charge subscription and advertising fees.  And that could potentially make the purchase of Hulu a less than ideal business venture. 

No comments:

Post a Comment